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Highlights:
- Today Flight Centre released trading updates from the October 2022 quarter.
- The company reported a revenue margin of 9.8% year-on-year basis.
- Flight Centre’s shares were trading 2.880% lower on ASX at 11:12 AM AEDT today.
Flight Centre Travel Group Limited (ASX:FLT) on Monday (14 November 2022) announced its latest trading updates. During the four months to 31 October 2022, Group TTV reached AU$6.8billion, a 246% rise on the prior corresponding period (pcp). The revenue surged to TTV – 248% - to AU$667million. The revenue margin grew year-on-year at 9.8%
Followed by this update, Flight Centre opened Monday’s trading session on a weaker note on ASX.
Flight Centre’s share price fell by 2.880% on ASX to AU$16.520 per share at 11:12 AM AEDT today (14 November 2022).
Flight Centre is an Australia-based travel retailer dealing with both leisure and corporate travel business.
In a year’s time, Flight Centre’s share price has fallen over 19% on ASX and on a YTD basis, its value decreased by more than 12% (as of 11:12 AM AEDT today).
Details of Flight Centre’s trading updates from the October 2022 quarter:
Flight Centre also informed that its revenue margin was highly impacted due to the reduction in front-end commission payments from some airlines in Australia and New Zealand from July 2022.
Furthermore, Flight Centre’s ongoing changes in business mix and airline price surge have also impacted the revenue margin of the company during the same quarter.
During the same period, the company delivered an underlying EBITDA profit of AU$61million, which represents Flight Centre’s turnaround from the AU$137million underlying EBITDA loss during the previous corresponding period.
Flight Centre’s financial outlook and guidance:
The company’s expectation towards its business remains positive for the current financial year considering the following pointers:
Image Source © 2022 Kalkine Media ®
Data Source- company announcement dated 14 November 2022
Flight Centre expects to achieve profit growth if all the above-mentioned points remain true for the remaining months of the financial year. However, the company mentioned that it is too early to accurately predict the company’s performance at this moment.
However, it says that EBITDA in the first half will be around AU$70 to AU$90 million, compared to an EBITDA loss of AU$184 million during the previous corresponding period.
The company also expects a significant improvement in its profit during the second half of the financial year driven by the following factors:
Image Source © 2022 Kalkine Media ®
Data Source- company announcement dated 14 November 2022
